FINANCIAL SECTOR DEVELOPMENT AND THE NIGERIA ECONOMY.

FINANCIAL SECTOR DEVELOPMENT AND THE NIGERIA ECONOMY

ABSTRACT

This study looked at the financial sector development and the Nigerian economy. The objectives of this study are to analyze the various developments in the financial sector, to examine the trend of the financial development and to determine the financial sector development in relation to the Nigerian economy. This study is based on the Big-Push theory and the method used in the study is an explanatory method which is more of analysis. The findings, which were both theoretical and empirical shows that there was a correlation between the literatures reviewed and the findings, while the empirical findings proved the Big-Push theory wrong. The recommendations made in this study are to enable the success of financial sector developments in Nigeria and concluding on the note that there indeed exist a relationship between the financial sector development and that of an economy.

CHAPTER ONE

INTRODUCTION

1.1      Background of the Study

Financial sector is in no doubt a very essential part of the economy of a nation and any development experienced in the financial sector extends to other part of the economy. One of the most important tasks before developing countries is to achieve higher rate of economic growth. Due to the influence of the activities in the financial sector on the economy at large, every nation strives to have a proper and up to date financial sector.

For clarity, the financial sector does not only mean the banking sector, but also the capital market, institutions, laws, regulations and techniques through which bond, stocks and other securities are traded, interest rates are determined and financial services are produced and delivered around the world. The money and capital markets, along with the financial system that support them, are an exciting area for study. What goes on daily in these markets and within the financial system as a whole has a powerful impact on the economy. Broad changes are forever remaking the financial market as new institutions, new methods, new problems and new services continually appear.